‘Systemic reform of government-linked companies needed’

KUALA LUMPUR: A systemic reform of government-linked companies (GLC) is needed to ensure that they continue to contribute to structural changes in the country.

Universiti Malaya’s Political Economy expert Professor Edmund Terence Gomez said a comprehensive reform would ensure that GLCs become more transparent.

He was speaking from the opposition team during the Islamic University Malaysia’s (IIUM) public debate on the topic “The Malaysian government should limit its dependence on GLCs as drivers of economic growth”.

“GLCs were brought in to bring about structural changes. So, they should stick to that. That should be their role.

“Politicians don’t want to reform the system because GLCs are so opaque and that allows them to use it for themselves and this is what we need to check. Open up the system and be transparent,” he said.

Responding to a motion by the proposition team led by Institute of Strategic and International Studies’ Economics, Trade and Regional Integration director Firdaos Rosli, that law was required to govern GLCs, Gomez said the laws were in place albeit ineffective as they were controlled by politicians.

“Don’t blame the GLCs when politicians abuse them when they could have ensured that the GLCs do their work properly.”

Firdaos in his closing remarks, said despite having laws that governed GLCs, there was not a single act that comprehensively governed all GLCs, government linked investment companies and statutory bodies.

“This act must clearly define what GLC is and once we have that, things will be different as we are able to define what is in the national interest versus what is in the interest of the shareholders.”

Two IIUM students, Hana Zawawi and Khalis Khalid, also took part in the debate, representing the proposition and opposition teams respectively.

Over 200 IIUM students attended the fourth series of the public debate, which began last year.